Nike Inc logo

NKE - Nike Inc News Story

$135.93 2.3  1.7%

Last Trade - 14/05/21

Consumer Cyclicals
Large Cap
Market Cap £152.36bn
Enterprise Value £150.15bn
Revenue £27.32bn
Position in Universe 43rd / 6846

UPDATE 1-United Airlines unveils plan to fund more sustainable jet fuel made from trash

Tue 13th April, 2021 4:04pm
(Adds details on partners, adds company and industry
    By Tracy Rucinski and Ankit Ajmera
    April 13 (Reuters) - United Airlines  UAL.O  said on Tuesday
it has partnered with global firms including Nike Inc  NKE.N 
and Siemens AG  SIEGn.DE  in an "Eco-Skies Alliance" to finance
use this year of about 3.4 million gallons of low-carbon,
sustainable aviation fuel derived from trash.
    Though tiny compared with the 4.3 billion gallons of jet
fuel that United consumed in 2019 prior to the start of the
COVID-19 pandemic, the amount triples the roughly 1 million
gallons of sustainable fuel it has used each year since 2016.
    Airlines have used sustainable fuel since 2008 as part of
efforts to reduce outright emissions, but so far this represents
barely 1% of the fuel used worldwide, industry groups say.
    Chicago-based United named 11 of more than a dozen global
partners for the plan but did not disclose the cost, or how much
each would contribute. 
    Air transport accounts for 2%-3% of greenhouse gas
emissions, the French aerospace association said on Tuesday.
Environmental groups argue the sector's overall contribution is
    Partners include companies with corporate or cargo deals
with United, like Nike, Siemens, Palantir  PLTR.N  and Japan's
Takeda Pharmaceutical Co  4502.T .
    United said the project gives customers a way to help reduce
the environmental impact of flying beyond buying carbon offsets
and could help create more of a market for sustainable aviation
    "We'll see how it develops," Chief Executive Scott Kirby
told reporters. "I think there's a huge appetite for it."
    The airline industry has focused more broadly on the
purchase of carbon offsets to reduce the environmental impact of
flying, pending the arrival of new technology to meet the
sector's goal of halving net emissions by 2050 versus 2005.
    Environmental critics say offsets do not directly address
climate goals and mask the problem of ongoing jet emissions.
    United, which along with some other carriers has said it
wants to cut net emissions more aggressively by 100% by 2050,
has criticized offsets and announced a recent investment in
"carbon-capture" technology. It has invested in a sustainable
aviation fuel producer called Fulcrum BioEnergy.*:nL1N2IQ1P9
    "While we know that aircraft are never going to be
completely decarbonized, we are not going to use offsets as the
way to get to 100% green," Kirby said.
    Airline association IATA says life cycle greenhouse
emissions from sustainable fuel can be at least 80% lower than
normal fuel and are the only medium-term option for curbing
emissions growth, since airlines cannot yet switch to electric
    Delta Air Lines  DAL.N  has said it plans to replace 10% of
its jet fuel, currently refined from fossil fuel, with
sustainable aviation fuel by the end of 2030.*:nL2N2L21ED
    While using waste avoids taking land from food production,
environmental groups like Transport & Environment say such
supplies are limited and face competition from other sectors. 

 (Reporting by Tracy Rucinski in Chicago and Ankit Ajmera in
Editing by Tim Hepher and Matthew Lewis)
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.